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What are the legal steps for selling a small business in Ohio?

Picture of Chris Battis By   ·  1 minute read

Legal Advice for Selling a Small Business in Ohio

As a lawyer, I can provide you with legal advice on the steps that need to be taken while selling a small business in the state of Ohio.

  1. Evaluate Your Business: Before putting your business up for sale, it's important to evaluate its worth. Consult with a business appraiser or a valuation expert to determine the value of your business.
  2. Hire an Attorney: Selling a business entails complex laws and regulations. It's vital to hire an experienced attorney who can guide you through the legal process of the sale.
  3. Prepare the Business for Sale: Ensure all financial and accounting records are up-to-date. Make sure all liabilities, debts, and taxes are paid off. Also, ensure that all necessary licenses and permits are in order.
  4. Determine the Type of Sale: There are two types of sales: asset sales and stock sales. In an asset sale, only the assets of the business are sold, and the legal entity remains with the seller. In a stock sale, the buyer acquires the legal entity, including all assets and liabilities.
  5. Negotiate the Agreement: Once you have a buyer, negotiate the terms of the sale, including sale price, payment terms, and liabilities.
  6. Draft a Sales Agreement: Work with your attorney to draft a sales agreement that outlines the terms of the sale, including the purchase price, payment terms, warranties, non-compete clauses, and other relevant details.
  7. Obtain Necessary Approvals: Depending on the type of business, you may need to obtain approval from government agencies or regulatory bodies.
  8. Close the Sale: Once the buyer has agreed to the terms of the sale and all necessary approvals have been obtained, you can close the sale. At the closing, the purchase price is paid, and ownership of the business assets is transferred to the buyer.

In some cases, there may be additional steps or requirements that need to be taken, depending on the specifics of the sale. It's essential to seek the assistance of an experienced attorney who can guide you through the process and ensure the sale is carried out legally and responsibly.